eToro Forex Trading Review
Product Name: eToro Forex Trading
Product Description: There are two aspects to eToro’s forex trading offering that makes it stand out. Social trading where you can copy other forex traders trades and the ability to set your own leverage. As forex trading is notoriously difficult, and I would say that the majority of eToro’s client are early-stage traders, the ability to reduce the amount of leverage is a very useful.
- Forex pairs available: 41
- Minimum deposit: $50
- Account types: CFDs & investing in USD
- Equity overnight financing: 6.4% +/-2.9 SONIA
- Pricing: EURUSD 0.8, GBPUSD 2, USDJPY 0.8
Forex Leverage Control
When you reduce your leverage it means you reduce your risk, by putting up more margin when trading forex. So, for example, when you open a forex dealing ticket, your leverage is set at 30x, but you can reduce this to 1x. Meaning that if you want to speculate on $1,000 of GBPUSD, on 30x leverage, you would only have to put up $41 in initial margin, meaning you are potentially risking $959 that you don’t have. But, if you set your leverage to 1X yo have to put up the whole, $1,000 which reduces the temptation to take on excessive risk, with money you do not have.
Forex Copy Trading
The other feature that is unique to eToro is the ability to follow other forex traders through copy trading. However, it should be noted, though that if you are planning to trade forex by copying what other traders do it can be as hard as choosing your own trades. Just because a trader has done well in the past or if you think their trading ideas look good it does not mean they will be profitable in the future. Social trading is really only good for idea generation, which means you ultimately have to decide if you agree or disagree with another traders outlook.
Forex Trading Platform
- Social and copy forex trading
- Easy-to-use forex platform
- Can change your FX leverage
- Accounts must be in USD
- High FX conversion charges
- Limited FX market range
Research & Analysis
Tempted by the forex markets? Beware the risks of trading forex as a side-hustle.